ICRConference

January13th,2016

Forward-Looking Statements
This presentation contains various forward-looking statements. Please
refer to the note regarding forward
forward-looking
looking information in our most
recently filed Form 10-Q.
Throughout this presentation, we will be presenting Non-GAAP
fi
financial
i measures iincluding
i
adjusted
j
net iincome, adjusted
j
EBITDA
and adjusted EPS. This information is not calculated in accordance
with U.S. GAAP and may be calculated differently than other
companies similar Non
companies
Non-GAAP
GAAP information.
Reconciliations of our Non-GAAP financial measures to their most
directly comparable GAAP measures appear on our website.

Experienced Management Team

JJ Buettgen
Chairman, President & CEO

Joined Ruby Tuesday in Dec 2012

21 year restaurant industry veteran
25 years in the consumer space

Extensive experience in brand

building, marketing, strategic
planning and consumer research
for major restaurant and
entertainment companies

Jill Golder
Chief Financial Officer
& Treasurer

Joined Ruby Tuesday in April 2013

25+ years restaurant industry and
Finance experience

In-depth knowledge and

experience in corporate finance,
treasury, analytics, technology,
and investment optimization
p

David Skena
Chief Marketing Officer

Joined Ruby Tuesday in July 2015

20+ years marketing & consulting
experience

Particular expertise in brandbuilding, campaign management,

marketing & business strategy
development, including digital and
social media

Brett Patterson
Ruby Tuesday Concept
President

Joined Ruby Tuesday in July 2013

25+ years restaurant industry veteran

Extensive experience in Operations,

leading and developing teams,
enhancing
g efficiencies,
streamlining processes and
improving business results

Rhonda Parish
Chief Legal Officer & Secretary

Joined Ruby Tuesday in March 2015

30+ years retail & restaurant industry
experience

Extensive executive, legal and

regulatory experience in restaurant
and retail industries

Historical Context
Brand Shift to Polished Casual Pre-2013

Objective was to move the Ruby

Tuesday brand to the higher priced
Polished Casual dining segment
Polished Casual positioning was not
a viable strategy for Ruby Tuesday

Ruby Tuesday not viewed as a

credible polished casual brand
Fewer dining occasions exist in the
polished
po
s ed casua
casual d
dining
g space
No polished casual chains over
200+ restaurants
Ruby Tuesdays guest base and
restaurant portfolio not aligned
with polished casual dining
segment

Change in Use of Ruby Tuesday Brand

2012 versus 2007

Age

55+

35-54

25-34
INCOME

< $40

$40 to $75

> $75

Ruby Tuesday - Today

Casual-Dining Brand

Strong brand recognition

Broadly appealing menu

Garden Bar

Unique point of differentiation

Annual Revenue $1.1 billion

Average Sales Volume $1.7 million
733 restaurants

683 locations in the United States

50 international locations
5

Progress on Fundamentals
Increased variety of family friendly food
Broadened price points
Engaged with families
Energized Happy Hour
Business model improvements

Compelling New Promotions

AmericanRibFestival

Reintroducing Guest Favorites

ColossalBurger

Introduced New Signature Dishes

DoubleDeckerChicken

Energizing Happy Hour

10

Engaging Families with Kids

11

Bar and Grill Category is Crowded

12

Salad Concepts are Rapidly Emerging

13

We Are a Salad Concept With a Full Menu

Energetic
casual dining
Contemporary
Garden Bar
Handcrafted
American
Favorites

14

Current Garden Bar

15
15

Bigger, Bolder, Better

16

Expanding Successful Test

17

Refreshing Our Image

RefreshingOurImage

18

Before Remodel - Exterior

19

After Remodel - Exterior

20

After Remodel Night Exterior

21

After Remodel - Bar

22

After Remodel - Bar

23

After Remodel Interior Elements

24

Communication Strategy
Reaching our Core Consumer:
Women with young families (aged 25 40)

25

Social / Digital is Attractive

Enables multiple creative
messages
Can be highly targeted
Can be quickly optimized
Enables effective reach
att llower CPM
CPMs

26

Nov/Dec: Test, Learn, Apply, Repeat

Cohort System

Control

Test Group
A

Test Group
B

Test Group
C

Testing Variables
MEDIA DIST.:

AUDIENCE:

AFFINITY:

LIFESTYLE:

Social channel
Ad unit type
Ad placement

Purchaser Data
Entre Preference
Family Meals
Brand Promotions

Age
Gender
SoConnected
Home location

Family friendly
Millennial friendly
Time of Day

LLocations
ti
with
ith similar
i il results
lt bundled
b dl d to
t analyze
l
i
impact
t off weekly
kl tests
t t
Assured that lift in a cohort could be attributed to the variable
being tested
Tests were conducted weekly,
weekly and established/optimized based on
the learnings of the previous week
27

Tailored Promotional Messaging

Happy Hour

Message on Mobile
Platforms
Place from 2
2-6pm
6pm, weekdays

Kids Eat Free on Tuesday

Message on Sunday,
Monday, Tuesday
Place from Noon
Noon-9pm
9pm

28

Highly Localized Messaging

29

Restaurant-Level Optimization

Get granular to deliver the right message

Continually analyze CPE of individual messages at the region and store level
Serving images of entrees specific to what sells best in the respective region
When return exceeds cost
cost, ramp up weight of most impactful messages

30

How is it Going?

31

FINANCIAL OVERVIEW

32

Significant Progress on the Business Model

Adjusted EBITDA increased over 50%
FY15 Adjusted EBITDA of $80.6M increased 52% from FY14
FY15 Adjusted EBITDA margins improved 260 bps to 7.2%

Stabilized the Top Line

FY15 Same Restaurant Sales down -0.5%
0 5% ; improved from
down -5.3% in FY14
FY15 Same Restaurant Guest Counts of -1.4% were in line
with the Knapp-Track
Knapp Track industry benchmark

Strengthened Cost Structure

FY15 Restaurant Level Margins of 16.9%,
16 9%, +160 bps vs.
vs FY14
SG&A reduced $21.8 million to 10.2% of Sales

33

Fiscal 2016 Second Quarter Highlights

+60 bps
vs.
Knapp
Track

+$3.9M
above
b
last year

Same
Restaurant Sales

Restaurant
Margins

+0 8%
+0.8%

+175
175 bps

vs. Prior Year

Adjusted
EBITDA

Adjusted
EPS

$14.1M

($0.04)

+$0.04
above
b
last year

34

Opportunity to Grow Average Unit Volumes

$2.2

$2.1
$1.7

FY07

FY15

GOAL

$inMillions
35

Achieving Goal Creates Significant Value

$ Milli
$Millions

FY15

GOAL

AverageUnitVolume

$1.7

$2.2

RestaurantLevelMargin%

16.9%

18.0%

AdjustedEBITDA

$81

$130

AdjustedEBITDAMargin

7.2%

9.0%

Note:GoalResultsassume655companyownedunitsandSG&Aexpenseof9.5%
$inMillions
36

Strong Balance Sheet

Ended Q2 FY16 with a Stronger Balance Sheet
Cash Balance of $45.3 million
Book Debt of $231.9 million
Reduced debt $63.5 million over last 10 quarters

Priority for Cash: Create Shareholder Value

Maintain adequate cash levels to support the business
Invest in our key brand transformation initiatives
Pay down debt and/or repurchase shares

37

Owned Real Estate Provides Flexibility

Own land and building for 303 open restaurants
206 are debt free
97 have some type of debt
49 were independently appraised in
December 2013 at $101.4 million

38

Positioned to Drive Shareholder Value

Key Priorities of Brand transformation
Continued Menu Innovation
Garden Bar Test
Investing in our restaurant base through remodeling
Communicating more effectively with target customer

39